Akums Drugs and Pharmaceuticals Ltd (BOM:544222) Q3 2026 Earnings Call Highlights: Strong CDMO …

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Wed, February 18, 2026 at 10:04 AM GMT+9 4 min read

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**Operating Revenue:** INR 1,160 crore, an increase of 14.8% year-on-year.

**EBITDA:** INR 147 crore, an increase of 21% year-on-year; margins at 12.7%.

**EBITDA with Other Income:** INR 181 crore, a 33% increase year-on-year; margins at 15.2%.

**Profit After Tax:** INR 68 crore, an increase of 2.1% year-on-year.

**CDMO Revenue:** INR 916 crore, an increase of 16.3% year-on-year.

**Domestic Branded Formulation Revenue:** INR 115 crore, an increase of 4.2% year-on-year.

**International Branded Formulation Revenue:** INR 50 crore, an increase of 18% year-on-year.

**API Revenue:** INR 54 crore, an increase of 35.4% year-on-year.

**Trade Generics Revenue:** INR 25 crore, a decrease of 18% year-on-year.

**Cash Surplus:** INR 1,573 crore.

**Cash Flow from Operations:** INR 1,109.5 crore.

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Release Date: February 16, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Akums Drugs and Pharmaceuticals Ltd (BOM:544222) reported a strong Q3 FY26 with a 16% growth in the CDMO segment driven by strong volumes.

The international branded formulation business saw significant improvement with a 120% increase quarter-on-quarter.

The company achieved a healthy operating EBITDA of INR147 crore, marking a 21% increase year-on-year.

The European CDMO project is progressing well, with EU GMP accreditation received for Plant 2, and commercial supplies expected to start in FY28.

The company maintains a strong cash surplus of INR1,573 crore, providing a solid financial foundation for future investments.

Negative Points

API pricing remains under pressure, affecting margins despite stabilization in select molecules.

The trade generics segment saw a revenue decrease of 18% year-on-year, with ongoing losses.

The domestic branded formulation business experienced a 5.8% decrease quarter-on-quarter in revenue.

The API business reported a negative EBITDA of INR7 crore due to continued pricing pressure.

Capacity utilization remains low at 47%, indicating potential inefficiencies or underutilization of resources.

Q & A Highlights

Q: Can you elaborate on the CDMO growth, especially on the volume front this quarter? A: The volume growth was broad-based across existing customers, brands, and channels. The CDMO business saw a healthy volume growth with improved gross margins, driven by a recovery in the overall market. There were no one-off revenues like milestone income or licensing fees included in these numbers. - Sahil Maheshwari, Head of Strategy

Story Continues  

Q: How sustainable is the current CDMO volume growth, and what has changed recently? A: The CDMO is a make-to-order business, and the volume growth appears sustainable in the near term, with visibility of double-digit growth in Q4 as well. The industry has seen stricter regulations and growth in generic channels, contributing to this positive change. - Sahil Maheshwari, Head of Strategy

Q: What is the status of the European CDMO project and the Zambia contract? A: The European CDMO project is progressing well, with regulatory filings and country registrations underway. Commercial supplies are expected to start in the next financial year, with an annual revenue run rate of EUR35 million. The Zambia project is on track, with $25 million in supplies expected in 2026 and 2027, and commercial operations from the Zambia facility anticipated in 2028. - Sahil Maheshwari, Head of Strategy

Q: How is the API business shaping up, and what are the future expectations? A: The API business has been under pressure due to price erosion in cephalosporins. Efforts are underway to focus on non-cephalosporin products and improve margins through regulatory approvals and cost optimization. The aim is to achieve breakeven by focusing on different portfolios and geographies. - Sahil Maheshwari, Head of Strategy

Q: Can you provide insights into the domestic branded generics segment’s performance and strategy? A: The focus has been on improving profitability rather than top-line growth. This has been achieved through better control over overheads and rationalization of debtors and inventory. While the segment still incurs losses, they have been reduced compared to the previous year. - Sahil Maheshwari, Head of Strategy

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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